Zimbabwe at 32: Indigenisation and Economic Empowerment for Economic Transformation.

The Minister of Youth Development , Indigenisation and Empowerment was invited to be the Guest of Honour at the Annual Independence Youth Dinner hosted by the Zimbabwe Youth Council. Youths representing various Youth Organisations and representatives of political parties attended the dinner held at the HICC on the 17th of April 2012.

Zimbabwe celebrated its 32nd year of Independence from colonial rule on the 18th of April with this year's theme being "Indigenisation and Economic Empowerment for Economic Transformation".

The Minister thanked the previous speakers that had spoken on the need for youths to start making a difference, the same difference made by the youths of the 1970's- 80 that liberated Zimbabwe from colonial rule. He went on to say the Independence of Zimbabwe is not for any particular political party but for all Zimbabweans to embrace and celebrate the achievement of those that fought for the liberation of our country.

He went on to emphasize on the need for youths to come togather regardless of their differences and fight for the economic transformation of Zimbabwe by way of getting the corporate world to see that the transformation of Zimbabwe lies in the Youths of today, the same way the youths fought for the transformation of the political landscape of Zimbabwe.

Indigenisation and Economic Empowerment remains a key focus area of the Zimbabwean Government. The Government, through the Ministry of Youth Development, Indigenisation and Empowerment has already launched the Mhondoro- Ngezi, Chegutu Community Share Ownership Scheme(Zimplats Holdings), the Tongogara Community Share Ownership Scheme(Anglo America- Unki) and the Zvishavane Community Share Ownership Scheme (Mimosa Mining company). Employees have also, to date, benefitted from Employee Share ownership schemes with employees from Meikles Limited and Schweppes Limited already owning a stake in their companies.

Over the next 3 months, the Ministry expects to have launched a number of schemes through out the country...

Minister's Speech at the Ward Youth Officers Graduation Ceremony.

SALUTATIONS

THE GOVERNOR AND RESIDENT MINISTER OF

MASHONALAND EAST PROVINCE, HON. A. S. CHIGWEDERE

THE PRINCIPAL DIRECTOR, MINISTRY OF

YOUTH DEVELOPMENT, INDIGENISATION, AND EMPOWERMENT,

DIRECTORS, PROVINCIAL AND DISTRICT YOUTH

DEVELOPMENT OFFICERS,

STAFF OF DOMBOSHAWA INSTITUTE OF

MANPOWER DEVELOPMENT

HEADS OF GOVERNMENT DEPARTMENTS AND

OTHER GOVERNMENT OFFICIALS

INVITED GUESTS

LADIES AND GENTLEMEN

RELATIVES AND FRIENDS OF GRADUANDS

GOOD

MORNING TO YOU ALL!

Today is a very important day as we are

here for the ceremony to witness the graduation of Ward Youth Officers in

Mashonaland East province.

The Ward Youth Officers have received

training from the Domboshava Institute of manpower Development which is a

renowned leader in training in community development.

Ward Youth officers have very important

roles in my Ministry’s programmes for youth development and empowerment.

As many of you are aware, most of my

Ministry’s programmes are implemented where the youth reside in rural and urban

communities.  The staff of our programmes

need to have easy access to youth.

One of the main duties of the Ward Youth

Officers is to mobilize youth in order to encourage them to participate in

various personal and community development programmes. These include, for

example, community projects for rehabilitation of clinics, schools, roads; also

includes youth mobilization for farming projects for food security; mobilization

for health promotion programmes to prevent HIV and AIDS and other socially

transmitted diseases, and many more.

Another very important role for Ward

youth Officers is in mobilizing youth to generate an interest to become entrepreneurs.

The main aim is that youth are involved in income generating activities that

can support their lives and those of their families.

Mobilization for enterprise development

involves helping youth identify viable businesses, receive appropriate technical

and business management training, prepare business plans, register businesses,

apply for credit and finance, establish or join business commodity associations

and many other activities.

Becoming entrepreneurs is an avenue for

economic empowerment in which youth can become respectable members of their

families and communities. They have incomes in order to pay for basics such as

treatment for healthcare, food, clothing and even have some money for

recreation to pay for a soccer match or travel to visit friends and relatives.

Empowerment is about giving youth an

opportunity to do these things freely and with pride. When a person has the

means to support themselves, they have a sense of satisfaction and are become

confident and proud of their identify.

Since so many of our youth are idle, and

have no skills, the work of Ward Youth Officers is CRITICAL to ensuring they

help the youth acquire the right orientation to seek opportunities for building

themselves and their communities.

Therefore the certificates in community

development are important as they enable Ward Youth Officers do their work

successfully.

My Ministry has several programmes that

are aimed at community development and youth development. These include:

• The Youthbuild Zimbabwe programme where
  youth are involved in community building projects that also include job
  training skills, leadership development, and pre-vocational skills.

• The Integrated Skills Training programme
  (ISOP) which offers short courses in technical and entrepreneurial skills for
  community based businesses.

• We also have vocational training
  programmes are our vocational training centres (VTCs) located in different
  provinces.

• There are informal vocational skills
  training provided by mastercraftsmen and women.

• A Youth Development Fund (YDF) which
  provides loans to help youth start up and grow businesses. Our Ministry staff
  assist in identifying viable businesses, drafting business plans, registering
  businesses, and support to run the businesses.

As my Ministry is satisfied with the

role that the certificates in Community Development can play in promoting youth

development and empowerment, we authorised the enrolment of 247 Ward Youth

Officers on the 24 April 2010 as a pilot.

Prior to their enrolment, arrangements

were made between the Ministry and the Domboshava Institute to come up with

training modalities that would be appropriate for the work of the Ward Youth

Officers in the ground.

Today, we celebrate the achievements of

the collaboration and look forward to the positive contribution of Ward Youth

Officers in their respective wards.

We applaud their dedication to improve

their skills and knowledge. Most of all we believe that their commitment to

developing their communities will be upheld.

We look forward to greater effectiveness

of your work and the implementation of the Ministry’s programmes.

We say Makotokoto!  Amhlope!

I thank you and wish you all the best in

your endeavours!

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment

Foreign Investment in Zimbabwe: Indigenisation Issues by HONOURABLE S. KASUKUWERE (MP)

Presentation by

HONOURABLE  S. KASUKUWERE (MP)

Minister of Youth Development, Indigenisation and Empowerment

at the Zimbabwe Capital Markets Symposium,

Sandton Convention Centre, Johannesburg,

4th November 2010

Presentation Title: Foreign Investment in Zimbabwe: Indigenisation Issues

Background

Colonial system: Dispossession, marginalisation & exclusion of indigenous Zimbabweans.

Since independence Government of Zimbabwe passed various legislation to rectify colonial injustices.

Notable achievements realised in land reform, social sectors & some professions like accounting, lawyers, management.

Little progress was achieved in terms of significant indigenous ownership in mining, manufacturing, construction, tourism & transport sectors .

Emergence of empowerment lobby groups to pressurize Government to speed-up the empowerment of indigenous Zimbabweans

Foreign Investment

Foreign investment presents our economy with opportunities for increased production, increased employment, development of infrastructure and new technologies.

Foreign Direct Investment is generally associated with improved standards of living for the residents of the recipient countries.

A development model anchored on foreign direct investment only and which does not include the meaningful involvement of local Zimbabweans, is socially, economically and politically unsustainable.

Our vision is characterised by partnerships between local Zimbabweans and foreign investors to guarantee participation by indigenous Zimbabweans, security of investment and establishment of up- and down-stream industries for the maximum benefit to the majority of the population.

Zimbabwe is not the only country with legislation for promoting participation by  the indigenous majority. Other countries like South Africa, Botswana, Zambia have similar laws.

Developed countries have achieved a significant participation in the economy by their nationals & foreign investment still plays a meaningful partnership role.

Fundamental principles

• Recognition of the universally accepted notion of equal opportunities for all as a matter of natural right & the need to eliminate ownership of wealth along racial lines.
• That indigenous Zimbabweans must own & benefit from the exploitation and utilization of their God given natural resources. 
• Commitment to underpin our political sovereignty through economic independence.
• The need for broad-based participation in the indigenisation process as opposed to the enrichment of a few individuals only.

Policy objectives

• To economically empower previously disadvantaged Zimbabweans.
• To create conditions that will enhance the economic status of disadvantaged Zimbabweans.
• To democratise ownership of productive assets of the country.
• To promote the development of a competitive domestic private sector that will spearhead economic growth and development.

Indigenisation & Economic Empowerment Legislative Framework

1. 1.       Indigenisation & Economic Empowerment Act (Chapter 14:33).
2. 2.       Indigenisation & Economic Empowerment (General) Regulations, 2010.
3. 3.       Indigenisation & Economic Empowerment (General) (Amendment) Regulations, 2010.

Indigenisation & Economic Empowerment Legislation

• Act sets 51% indigenous shareholding in all businesses with a net asset value of US$ 500 000 as the long term policy objective.
• All mergers, restructurings, unbundling of business, demergers, relinquishment of a controlling interest shall comply with the 51% indigenous ownership requirement.
• Promotes procurement of goods and services from indigenous businesses.
• Provides for the establishment of the National Indigenisation & Economic Empowerment Board to advise the Minister & manage the Fund.
• Provides for the establishment of the National Indigenisation & Economic Empowerment Fund to finance indigenisation and empowerment  transactions.
• Provides for financial instruments to assist local investors with funding from fiscus, levies & borrowings.
• The Minister shall approve all indigenisation arrangements.
• Businesses aggrieved by the Minister’s decision may appeal to the Administrative Court.
• The Indigenisation and Economic Empowerment (General) Regulations 2010 require existing businesses above the threshold of US $ 500 000 to declare their levels of indigenisation to the Minister and if not compliant, submit to the Minister their Provisional Indigenisation Implementation Plans.
• False declaration of information to the Minister regarding shareholding structures is an offence and liable to prosecution.
• New investments above the threshold of US $500 000, declare their levels of indigenisation to the Minister and if they are not compliant, they submit their Provisional Indigenisation Implementation Plans.
• Employee, Management & Community Share Ownership Schemes or Trusts are encouraged to be set-up as part of 51% indigenous shareholding to ensure broad based participation.

Reserved sectors for indigenous  Zimbabweans:

•  primary production of food & cash crops
•  retail & wholesale trade
•  barber shops, hairdressing & beauty saloons
•  employment agencies, estate agencies
•  valet services
•  grain milling, bakeries
•  tobacco grading, packaging & processing
•  advertising agencies
•  milk processing
•  provision of local arts & craft
•  marketing & distribution.

Indigenisation & Economic Empowerment Legislation (Cont’d)

• Establishment of Sector Committees for the purpose of assisting the Minister to come up with sector specific implementation frameworks, with respect to the appropriate minimum net asset value threshold above which a business in the sector or sub-sector concerned is required to comply with the regulations,
• … the lesser shares, maximum periods and weightings to be assigned to socially and economically desirable objectives & policies to overcome specified barriers and challenges to indigenisation in any sector of the economy.
• Sector Committees concluding their work & recommendations to be considered by Government before gazetting of the sector specific implementation frameworks.
• Government will review all licensing procedures to ensure compliance with I& EE legislation.
• Notable Indigenisation proposals approved to date: Schweppes (Pvt) Ltd, Old Mutual.

What indigenisation is not about

Immediate compliance: Phased compliance for both existing and new investments. New investors are free to come and invest on condition that they submit their plan, setting out how they intend to comply over 5 year period.

Investment prerequisite:. The 51% indigenous shareholding is not an investment pre-requisite.

Imposition of indigenous partners: The Government will not impose indigenous partners on foreign companies or businesses. Existing and/or new companies or businesses identify their own partners and negotiate the details of their joint venture agreements among themselves without any involvement of the Government.

Expropriation or nationalisation of businesses: The indigenisation process does not entail expropriation or nationalisation of companies or businesses. Indigenous Zimbabweans pay for any stake they take-up in an indigenisation transaction.

Conclusion

Our indigenisation & empowerment laws are not intended to stifle foreign investment, but rather guarantee security of investment through indigenous participation.

The indigenisation and economic empowerment laws are premised on the need to forge mutually beneficial partnerships between local and foreign investors.

Our indigenisation & empowerment laws have created certainty in Zimbabwe’s economy since investment requirements are now enshrined in the law and not subject to speculation.

Our Indigenisation & empowerment legislation ensures broad-based participation by indigenous  Zimbabweans to guarantee a stable investment environment.

Thank you!

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment